Content Wall represents biggest roadblock to direct to consumer OTT

August 27, 2013  | Subscribers Only

Maria Rua Aguete Maria Rua Aguete Technology Fellow and Executive Director – Media, Service Providers & Platforms, IHS Markit
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This report looks at the economic barriers to a transition to OTT as a primary means of television delivery. The entrenched economics of the TV industry represent a significant barrier to a paradigm shift in the TV industry in that content owners risk shooting themselves in the foot by licensing content to new players and damaging existing lucrative relationships with established players. Here, using the UK as a model, we examine the value of movie and entertainment content in the pay TV window, the main battleground for OTT services today and look at the number of subscribers that would be required to support a direct to consumer OTT proposition.

Tables and charts included:
  • BSkyB content spend by type
  • Current value chain
  • The new model for TV
  • Total net price point for OTT services based on current market levels
  • Monthly price points per content provider
  • UK: Content owners' movie and entertainment revenue
  • Channels by owner
  • Content majors: UK estimated income from rights and carriage
  • UK: Relative importance of carriage income major content providers (2012)
  • Content mini majors: UK estimated income from rights and channel carriage
  • UK: Relative importance of carriage income mini major content providers
  • Major producers: average OTT subscribers needed to match current income
  • Majors: average direct OTT subscribers needed to match income from UK premium rights market
  • Majors: direct OTT subscribers needed by content provider to match UK rights and channels
  • Major producers: average OTT subscribers needed to match current income from rights and channels at three ARPU levels
  • Major producers: average OTT subscribers needed to match current income from premium rights market
  • Mini Majors: direct OTT subscribers needed by content provider to match income from UK rights and channels
  • Total UK rights and carriage market average OTT subscribers needed to maintain income
  • Average direct OTT subscribers needed to maintain income from UK premium rights only
  • OTT subscribers needed at �5/month to match rights and carriage (majors)
  • OTT subscribers needed at �10/month to match rights and carriage (majors)
  • OTT subscribers needed at �5/month to match rights and carriage (mini-majors)
  • OTT subscribers needed at �10/month to match rights and carriage (mini-majors)

Pages: 20

Tables and charts: 23

Maria Rua Aguete

Technology Fellow and Executive Director – Media, Service Providers & Platforms, IHS Markit

Maria Rua Aguete is an executive director at IHS Markit, focusing on Media, Service Providers & Platforms.

Geography
Europe UK
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